„Assignment of Proceeds of a Letter Of Credit“

What does Assignment of Proceeds of a Letter Of Credit stand for?

If the bank agrees, the beneficiary assigns all or part of the proceeds to be paid to another party after the required documents have been presented.

Source:

James C. Baker, “The Banker’s Guide to Letters of Credit”, Harris Publications Inc., New York, NY, USA, 2003, p.77.

Financial and BankingView all items
Something is not correct?Let us know!